03/24/10 - Brandon Johnson, Interviewed by Wireless Week's - CTIA 2010 Show Daily


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CTIA - Wireless 2010 - Wireless Week's Show Daily
March 24, 2010

Q&A: M2M & the Wholesale Model

Wireless Week Associate Editor Andrew Berg recently caught up with Brandon Johnson, chief technology officer at M2M DataSmart, a wholesale provider of CDMA-based cellular data airtime for the machine-to-machine market.

Wireless Week: For those who may not know, can you describe what exactly it is that M2M DataSmart does?

Brandon Johnson: M2M DataSmart provides CDMA data services for the machine-to- machine market. We provide the same type of wireless data services that are available from the major wireless carriers.

However, we are specialized in the M2M market. We go beyond the service that the wireless carriers provide to truly help our customers get their products to market and succeed. We provide design and wireless certification services. Our developer accounts allow customers, with prototype designs, to test new products on the network without the normal headaches associated with getting wireless accounts for testing. Our Web-based, customer account management system gives in- depth visibility into each device’s activity and allows customers to proactively monitor devices catching problems before they affect end users.

We are a nimble company with a talented and knowledgeable team. Every solution we offer spawned from a customer’s need. If we don’t have something a customer needs, we build it.

WW: Can you describe the nature of DataSmart’s relationship with Sprint?

Johnson: We are a Sprint MVNO (mobile virtual network operator). We have an agreement with Sprint where we utilize their network infrastructure, but we sell it directly at exceptionally competitive pricing.

The need for the carriers to have an M2M aggregator has become a critical success factor for the growth of their M2M business. The carriers have the ability and mechanisms in place to activate handsets (one at a time) but not for M2M customers that use embedded modules/ modems and may require bulk activations.

Getting a new machine- to-machine device to market requires a partner that is knowledgeable about advanced applications and has the expertise to work with a wholesale application provider.

Before partners like M2M DataSmart, this translated into:

Fixed price airtime plans
No peak/off peak options
No developments tools
No test accounts to start development of the M2M device
No carrier certification support
A total lack of support getting an M2M device to commercial release, making it generate revenue
M2M DataSmart is the vehicle to increase that ratio of success for Sprint.

WW: How would you respond to those who say that CDMA is simply too expensive when compared with GSM?

Johnson: That was a valid argument in the past, but not anymore. We feel that our pricing is competitive with everyone else. In addition, we are willing to custom tailor a package to a customer’s specific needs. In the rare instance that we cannot put the right package together, Sprint has been very accommodating in helping us make it happen. We can always put something together that meets our customer’s needs and budget. Sprint specifically has been focused on the M2M market and has taken our input to develop peak and off peak pricing. For M2M DataSmart, that allows the M2M market to utilize its network at times where there is no load – this off peak pricing is about a 50 percent cost reduction for M2M applications.

From a hardware standpoint, the price of CDMA modules is dropping to a point where it is directly competitive with the equivalent GSM hardware.

WW: What are some of the industrial M2M segments you see as poised for the largest growth in the near future?

Johnson: I am very excited about GPS tracking-based services. The cost of the hardware is dropping and with our low service prices, I can see applications finding their way into many new markets.

We are also seeing many wireless backup applications coming to market. Applications where computer network hardware manufacturers are incorporating wireless chipsets into their devices to serve as failovers if the primary network connection goes down.

The smart grid initiative is pretty exciting, as well. I look forward to seeing how that takes shape.

WW: Are there certain spaces within the consumer market that you find particularly promising?

Johnson: GPS tracking. I already see it working its way into the consumer market with the Zoombak product. I also think there is huge potential with the Qualcomm inGeo chipset. We should see GPS tracking really making its way into the consumer market.

WW: How far are we in the United States from widespread adoption of smart grid and meter technology?

Johnson: I think we will see significant evolution in smart grid technology now. Hardware and service are starting to reach price points where widespread deployment is actually viable for utility companies. Coupled with the strong government support this initiative is getting, it’s poised for explosive growth in the near future. We’re probably still a few years away from smart meters being the majority. Yet, I know that many utilities have already deployed in quite a few cities.

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